Indian Cabinet Raises EPFO Wage Ceiling to Rs 25,000 Monthly

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month.

This move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage. The revised ceiling takes effect from September 17, 2026. Information Minister Ashwini Vaishnaw announced the cabinet approval, noting it is the first revision to the EPF wage limit in 12 years. The EPFO wage ceiling remained unchanged from 2004 to 2014 and was enhanced to Rs 15,000 in September 2014.

Employees earning between Rs 15,000 and Rs 25,000 monthly will now come within the statutory social security framework. This expansion provides access to provident fund savings, pension protection under the Employees’ Pension Scheme (EPS), and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI). The annual government outgoings are estimated at about ₹11,339 crore, against the existing annual budgetary support of about ₹10,250 crore. The Union Cabinet approved the Ministry of Labour & Employment’s proposal.